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Suppose that Alexi and Tony can sell all their street tacos for $3.50 each and all their Cuban sandwiches for $3.50 each. Suppose each of them works 20 hours per week and they decide to completely specialize. That is, Alexi will spend all 20 hours on production of one good, and Tony will spend all 20 hours on production of the other good. How will they spend their time? Tony will spend 20 hours on the production of street tacos. Alexi will spend 20 hours on the production of Cuban sandwiches Tony will specialize in street taco production and earn $ Alexi will specialize in Cuban sandwich production and eam S Their maximum joint revenue is per week

Suppose that Alexi and Tony can sell all their street tacos for $3.50 each and all their Cuban sandwiches for $3.50 each. Suppose each of them works 20 hours per week and they decide to completely specialize. That is, Alexi will spend all 20 hours on production of one good, and Tony will spend all 20 hours on production of the other good. How will they spend their time? Tony will spend 20 hours on the production of street tacos. Alexi will spend 20 hours on the production of Cuban sandwiches Tony will specialize in street taco production and earn $ Alexi will specialize in Cuban sandwich production and eam S Their maximum joint revenue is per week

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Alexi and Tony own a food truck together that serves only two items, street tacos and Cuban sandwiches. Some customers purchase both goods together; therefore, they will always produce both goods. 480- Alexi and Tony can sell all the street tacos and Cuban sandwiches that they are able to produce, and will split the revenue equally. 400 Output Per Hour Street Cuban 320- Tacos Sandwiches Alexi 20 100 a 240- Tony 60 30 160 Alexi's opportunity cost of producing one taco is 5 Cuban sandwiches. (Round your response to two decimal places.) Tony's opportunity cost of producing one taco is 0.5 Cuban sandwiches. (Round your response to two decimal places.) 80- PPF 1o00 800 1200 1600 2000 2400 2800 Cuban sandwiches Alexi has a comparative advantage in the production of Cuban sandwiches 0- 400 Tony has a comparative advantage in the production of street tacos. Assume that Alexi works 20 hours per week in the business. Further assume that Alexi devoted half of his time (10 of the 20 hours) to making street tacos and half of his time to making Cuban sandwiches. 1.) Using the line drawing tool, graph the possible combinations of street tacos and Cuban sandwiches that he could produce in a week. Label the line 'PPFAle time 2) Using the point drawing tool, indicate how many of each good he actually produces in a week given the amount Street tacos
Transcribed Image Text:Alexi and Tony own a food truck together that serves only two items, street tacos and Cuban sandwiches. Some customers purchase both goods together; therefore, they will always produce both goods. 480- Alexi and Tony can sell all the street tacos and Cuban sandwiches that they are able to produce, and will split the revenue equally. 400 Output Per Hour Street Cuban 320- Tacos Sandwiches Alexi 20 100 a 240- Tony 60 30 160 Alexi's opportunity cost of producing one taco is 5 Cuban sandwiches. (Round your response to two decimal places.) Tony's opportunity cost of producing one taco is 0.5 Cuban sandwiches. (Round your response to two decimal places.) 80- PPF 1o00 800 1200 1600 2000 2400 2800 Cuban sandwiches Alexi has a comparative advantage in the production of Cuban sandwiches 0- 400 Tony has a comparative advantage in the production of street tacos. Assume that Alexi works 20 hours per week in the business. Further assume that Alexi devoted half of his time (10 of the 20 hours) to making street tacos and half of his time to making Cuban sandwiches. 1.) Using the line drawing tool, graph the possible combinations of street tacos and Cuban sandwiches that he could produce in a week. Label the line 'PPFAle time 2) Using the point drawing tool, indicate how many of each good he actually produces in a week given the amount Street tacos
Cuban sandwiches. 1.) Using the line drawing tool, graph the possible combinations of street tacos and Cuban sandwiches that he could produce in a week, Label the line 'PPFaleyi 480 2) Using the point drawing tool, indicate how many of each good he actually produces in a week given the amount of time spent on each. Label the point 'A'. 400 Carefully follow the instructions above and only draw the required objects. 320 Suppose that Alexi spent all 20 hours of his time on street tacos and Tony spent 17 hours on Cuban sandwiches and 3 hours on street tacos. ㅎ 240- 200 Combined they would produce a total of 580 tacos and 510 Cuban sandwiches. 160- Suppose that Alexi and Tony can sell all their street tacos for $3.50 each and all their Cuban sandwiches for $3.50 each. 80 PRE Suppose each of them works 20 hours per week and they decide to completely specialize. That is, Alexi will spend all 20 hours on production of one good, and Tony will spend all 20 hours on production of the other good. 1000 1200 1600 2000 2400 2000 Cuban sandwiches 0+ 400 How will they spend their time? Tony will spend 20 hours on the production of street tacos. Alexi will spend 20 hours on the production of Cuban sandwiches. Tony will specialize in street taco production and earn $. Alexi will specialize in Cuban sandwich production and eam S Their maximum joint revenue is S per week Street tacos
Transcribed Image Text:Cuban sandwiches. 1.) Using the line drawing tool, graph the possible combinations of street tacos and Cuban sandwiches that he could produce in a week, Label the line 'PPFaleyi 480 2) Using the point drawing tool, indicate how many of each good he actually produces in a week given the amount of time spent on each. Label the point 'A'. 400 Carefully follow the instructions above and only draw the required objects. 320 Suppose that Alexi spent all 20 hours of his time on street tacos and Tony spent 17 hours on Cuban sandwiches and 3 hours on street tacos. ㅎ 240- 200 Combined they would produce a total of 580 tacos and 510 Cuban sandwiches. 160- Suppose that Alexi and Tony can sell all their street tacos for $3.50 each and all their Cuban sandwiches for $3.50 each. 80 PRE Suppose each of them works 20 hours per week and they decide to completely specialize. That is, Alexi will spend all 20 hours on production of one good, and Tony will spend all 20 hours on production of the other good. 1000 1200 1600 2000 2400 2000 Cuban sandwiches 0+ 400 How will they spend their time? Tony will spend 20 hours on the production of street tacos. Alexi will spend 20 hours on the production of Cuban sandwiches. Tony will specialize in street taco production and earn $. Alexi will specialize in Cuban sandwich production and eam S Their maximum joint revenue is S per week Street tacos
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